Valentino, 2024 carries no sweetness. Turnover and profits fell last year for the fashion house controlled by the Qatari fund Mayhoola for investments, which also owns Balmain and Pal Zileri. Valentino’s 30% stake, however, is in the hands of Kering. Last year, the label changed creative directors: but will the switch from Pierpaolo Piccioli to Alessandro Michele succeed in reversing the trend?
2024 carries no sweetness
Valentino’s revenue fell 3% to 1.31 billion euros in 2024, which equates to a 2% decline at constant exchange rates. The direct retail channel (including online sales) generated 70% of revenue and grew by 5%. The e-commerce channel accounted for 15% of direct sales last year, up from 11% in 2023 (an increase of 37%). All this in a context that the Roman fashion house described as “difficult and complex“. Instead, to achieve “more targeted distribution through integrated partnerships”, the wholesale channel lost 20%. At the end of 2024, Valentino’s earnings before interest, taxes, depreciation and amortization fell 22% to 246 million euros, due to “nonrecurring balance sheet items”.
Important progress, however
For Valentino CEO Jacopo Venturini, the brand “made important progress in 2024“. In the company’s press release and reported by WWD, Europe and Asia “experienced difficult conditions, especially in the second half of the year”, but now the effect of Alessandro Michele’s creative entry is expected. The first products signed by the former creative director of Gucci, and dedicated to the 2025 season, went on sale in September and October 2024. Venturini does not hint at initial market responses, but it’s clear that Valentino expects gradual sales growth, albeit in a deteriorated overall context compared to last year.
Read also:
